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BOK vows close monitoring of inflation amid U.S. tariff uncertainty

Published: 04 Jun. 2025, 17:05

ATMs in Seoul on June 3 [YONHAP]

Inflation likely remain stable throughout the year, but close monitoring is required due to such risk factors as volatility in the foreign exchange market and global oil prices stemming from the United States' aggressive tariff plans, the central bank said Wednesday.

Bank of Korea (BOK) Deputy Gov. Kim Woong made the assessment during a meeting to review price trends after government data showed that consumer prices had risen 1.9 percent from a year earlier in May.

It was the first time in five months that inflation had come to less than 2 percent.

“In June, consumer prices may rise slightly due to base effects as prices of agricultural and petroleum products declined last year. From the second half of the year, however, the impact of falling oil prices and weak domestic demand are expected to bring inflation down to the 1 percent range,” Kim said.

“Such risk factors as the won-dollar exchange rate, oil price volatility stemming from U.S. tariff policies and weather conditions in summer remain inherent. We will continue to closely monitor future inflation trends,” he added.

Yonhap